No. of Recommendations: 1
Does anyone know if the interest you pay on a 401k loan counts towards your annual contribution limit? I can't seem to find any information online about this.

It does not - I can't reference anything in the law or tax codes on this but I can state that twice in the past I have had loans AND maxed my contributions to my 401K and no one had a problem with it.

If returns are low (like now) and you are looking to increase the money stashed in your 401K, this may be a "cheat" you can exploit.
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement